SharpLink: The potential market size of Ethereum is much larger than Amazon's valuation of $380 billion

The topic of comparing the valuations of Ethereum and Amazon has sparked heated discussions on X. Santiago, the founder of Inversion Capital, believes that Ethereum's valuation is too high. He stated that ETH's price-to-sales ratio (valued at $380 billion with an annual revenue of $1 billion) is far higher than Amazon's; even during the dot-com bubble, Amazon's price-to-sales ratio never exceeded 28 times. Ethereum holders pay about 146 times the price for every $1 of revenue compared to what Amazon investors paid back then. He believes that Amazon is also a successful network. Whether a company or a network, its pricing depends on the economic benefits generated (revenue and cash flow), while TVL, collateral assets, or settlement volumes are not revenue.

SharpLink, a treasury company for Ethereum, stated that traditional valuation models do not apply to Ethereum: Amazon is a company, while Ethereum is a network. Ethereum is the target network for the future migration of the financial system, and its potential market size is much larger than the scale when Amazon was valued at $380 billion. A better way to measure Ethereum's value is to examine the scale of assets secured by its network. Historically, as more assets have been transferred on-chain and settled (with TVL growth), Ethereum's price has also increased (though not completely in sync).